Nifty Dips Below 25.6k; Wipro Plunges 8% on Weak Outlook

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AuthorVihaan Mehta|Published at:
Nifty Dips Below 25.6k; Wipro Plunges 8% on Weak Outlook
Overview

The NSE Nifty 50 index retreated below 25,600, closing down 0.42% on January 20. Wipro shares experienced a sharp intraday fall of over 8% following a weak fourth-quarter guidance, impacting broader market sentiment. Mid and small-cap indices also registered losses. Several companies announced significant corporate actions, including fundraising, land acquisitions, and order wins, while major firms reported quarterly earnings.

Market Retreats as Wipro Guidance Dims Outlook

The NSE Nifty 50 index concluded Friday's trading session below the 25,600 mark, shedding 0.42% to settle at 25,585.50. The benchmark indices notably underperformed the Nifty Small Cap 250, which saw a steeper decline. The broader market sentiment was weighed down by significant individual stock movements.

Wipro Faces Sharp Sell-off on Weak Q4 Outlook

Wipro Ltd. was the primary drag on the Nifty, plummeting over 8% intraday after issuing a cautious outlook for its fourth-quarter performance. This steep decline highlighted investor concerns over the IT major's future revenue trajectory and profitability.

Mid and Small Caps Under Pressure

The weakness extended to broader market segments, with the Nifty Midcap 150 index falling over 0.5%. Stocks like IDBI Bank and MRPL contributed to the drag in this segment. Similarly, the Nifty Smallcap 250 index saw a decline of over 1%, indicating a general risk-off sentiment pervading the market.

Corporate Actions and Earnings Drive Individual Stocks

Away from the broad market moves, numerous companies made headlines with significant corporate announcements. Mahamaya Steel Industries faced potential promoter shareholding freeze for non-compliance. Info Edge (India) subsidiary announced an investment of Rs 10 crore. Arman Financial Services approved issuing Non-Convertible Debentures (NCDs) worth Rs 125 crore, while Sumeet Industries greenlit a Rs 200 crore rights issue.

Capri Global Capital saw its CEO, Mr. Monu Ratra, resign. Niraj Cement Structurals secured an order worth Rs 230 crore from Northeast Frontier Railway. Amara Raja Energy & Mobility received a tax demand of Rs 22 crore, including penalties. Amber Enterprises India and its arm announced land allotments near Jewar Airport for new manufacturing plants with a combined proposed investment of Rs 6,785 crore.

Earnings Reports Show Mixed Fortunes

Post-market, several key companies released their third-quarter results. LTIMindtree reported a revenue increase of 3.7% to Rs 10,781 crore, though net profit fell 30.7% due to a one-time cost. Havells India posted a robust 14.3% revenue growth to Rs 5,588 crore and a 21% rise in EBITDA. CEAT's revenue surged 26% to Rs 4,157 crore, with EBITDA up 65.3%, despite a one-time labour code loss.

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